Plug Power Inc. Stocks (NASDAQ: PLUG) are at a multi-year high after the hydrogen fuel cell maker announced a joint venture with the French automaker on Tuesday. Renault ADR (Pink: RNLSY).
What happened: Plug Power and Renault have signed an agreement to launch a 50-50 joint venture for R&D, production and sales of hydrogen-powered fuel cell vehicles and turnkey solutions, the companies said in a joint statement.
The joint venture will be operational by the end of the first half of 2021 and will be based in France, according to Plug Power and Renault.The company said it would serve the rapidly growing market of commercial vehicles, fuel cells, taxis and transportation. People for commerce
The joint venture will build on Renault̵7;s experience in new energy and a strong position in electric commercial vehicles and Plug Power’s 20 years of experience in fuel cell technology and hydrogen solutions.
Renault and Plug Power said the joint venture would begin commercializing the fuel cell LCV in Europe starting in 2021 with a pilot fleet installed.
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Why is this important: Fuel cell technology is slowly gaining momentum as an alternative to battery cell technology for driving green energy vehicles.
This is reflected in Plug Power’s share price, which has been tearing since mid-2020.
“Plug Power is proud to be an innovation leader in the hydrogen fuel cell industry, which is why we are excited to partner with Groupe Renault to lead the European fuel cell van market,” Plug Power CEO Andy Marsh said in a statement.
PLUG Price Action: Plug Power shares were up 22.33 percent in the Tuesday session to close at $ 66.02.
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